Daily Archives: December 19, 2012

Mid-Term Health Checks – Why Every Software Contract Needs One

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom and transportation. Last week, I discussed how the software licensing landscape is changing and how it will impact software spending in 2013. At the end of that post, I mentioned the role that a "mid-term health check" can play in staying ahead of vendors' changes to pricing and licensing. If you're wondering exactly what a mid-term health check is, how it works and why it's important - keep reading. There has been a flurry of pricing and licensing […]

Afternoon Coffee: 2013 Supply Chains, Busiest Expense Report Day, Runway Safety

From E2Open's CEO Mark Woodward. 5 Supply Chain Predictions For 2013, The Year Of The Network -- t's that time of year when we celebrate the fact that next year is a clean slate and all is possible. It's also the time when we propose our budgets and very quickly realize that we'd better focus on what's important, as that's where the budget will inevitably go. Or, as the beloved Judge Smails ofCaddyshack -- an amateur CFO (little known fact)-- says to his grandson Spalding, "You'll have nothing--and like it!" Runway safety. Boeing and Embraer collaborate for runway safety -- […]

Prime Contractors: Sensible Procurement Skill or Soft Option (Part 2)

There has been an increasing trend to bundle up activities that aren’t necessarily clearly related and hand them over a to a single prime contractor. But are the pros and cons of this being considered properly and carefully? Is this happening for the right business reasons, or purely because it is fashionable and looks like it should make life easier for the buyer and their organisation? Let’s take a look at the pros and cons.

Finding the Right Category Manager

A thought crossed my mind after reading a short missive by Procurement Leaders' Paul Teague about what makes an ideal category manager. Paul starts his note by suggesting that an ideal background for category management often includes "extensive knowledge and even experience within the category; a deep understanding of the market the category represents, especially including the supply base; a handle on where technology, pricing, and other business trends in the category are heading; analytical skills; project-management skill." Yet he then notes a suggestion by Justin Hughes stating that rather than try to achieve this blended nirvana – after all, […]

Relocation Services: Exploring Sourcing Savings and Aggregation Models

Savings opportunities in relocation services come from several areas. Typically, the largest addressable spend areas (in roughly declining order of size) fall into this pattern for most companies based on specific category profiles: household goods moving, temporary living, relocation services fees, policy-driven costs, property management, spousal counseling, tax gross-ups, storage, special counseling, inspections and appraisals. Within household goods, 15% on average in total savings is possible for organizations of all sizes. While household goods make up a majority of the pie, you can achieve savings with relocation service fees. And aggregation can greatly benefit savings in temporary living, inspections, and […]

Search Global Suppliers: Directories and Discovery (Part 1)

While some might argue that Google has essentially catalogued the world – from books to blogs – the search giant fails to provide a universal engine to access relevant information on global suppliers. Some see this as the Holy Grail of discovery for global supply management initiatives. In fact, much of the interest in companies like alibaba.com comes from the perceived value of their directory and the suppliers willing to advertise on it. But not a single supplier search engine has crossed the global, regional, and category chasm. Not ThomasNet, which does a commendable job on the domestic industrial side, […]